End of the Dollar and the Coming 2nd Mortgage Crisis

January 20, 2015
By: Dominick Giammarino
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Will there be an end of the dollar and another mortgage crisis in the near future and what can we expect?  Here are two important Max Keiser interviews that were so important that I felt obligated to share them.  Max Keiser is a very influential investor, sometimes he is a little bit over the top, which I love.  One of the things I have told everyone is that I always try to seek good content, and Max delivers the goods every time.

The first video is about why we should not expect that the dollar will be around forever, the end of the dollar is coming.

Video Title: End of No-Alternative-To-Dollar Era
In this episode of the Keiser Report, Max Keiser and Stacy Herbert note that as the Empire collapses, they’ve killed all the boogeymen and yet blood for oil has not helped create escape velocity. They also discuss what the return of humpback whales and great white sharks to the waters off Manhattan can tell us about the end of a monoculture in fiat currencies where the dollar has reigned supreme. In the second half, Max interviews Dr. Michael Hudson about the war machine, Judge Griesa’s ruling, super imperialism and the end of a 60 year cycle in which there was no alternative to the dollar.

I hope that video was helpful because when it comes to the Dollar Collapse and the End of US Currency, it’s not a joking matter.  Pretty soon, I feel, the dollar will no longer be the world currency.

The second video has to do with a coming 2nd mortgage crisis.

Keiser Report: Mortgage Crisis 2.0 (E649)
For the video below, here is the description:
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the impending second wave of the lastest mortgage crisis, this time due to Helocs (Home equity lines of credit) and HAMP (Home Affordable Modification Program) interest rate resets. In the second half, Max interviews Aaron Krowne on the true state of the housing market across America – from home ownership rates to mortgage arrears.

Next Video: Conquering the Collapse

Thanks for watching, please comment below, you can skip past this video transcript.

End of the Dollar – Video Transcript

Transcript for the end of the dollar video, it might be a little bit unclear, but it’s automatically translated.

0:34 I wanna wake up in a city
0:37that doesn’t sleep yes this is the guys are a part IMAX Kaiser
0:42right here in the belly of the beast Manhattan Stacy
0:45you’re looking very beautiful max I want to make sure to clarify I’m glad you
0:50 said that were in New York City
0:51as many thanks out there we they watch the show and I think when you’re a man
0:55or Kabul
0:56they don’t realize this is Minh it’s not a green screen no it’s not a green
1:00screen
1:00and in fact you might see some humpback whales breach the water
1:05here you might see some great white sharks that’s a lot of something I’d say
1:08that over there
1:09or 30 bill weld want to mention that we are recording at coal feed
1:13right here Long Island City these guys are so nice allows the film near
1:16I want to manage match while we’re here back in London
1:20you were seen on a placard Max Keiser got a placard piece broke out stock
1:23markets would crash
1:25this is from man loach max stock markets are not crashing
1:30that means there is no peace well this is the amazing thing about these markets
1:34is that they really feeding
1:35on a war and destruction because that’s where the money is coming from tiffy
1:39Dali’s bombing campaigns around the world principally
1:42from the country’s the stock market setting all-time highs like the US stock
1:45market that’s where the money is coming
1:47do to continue the occupation in these countries so if there was a crash
1:51that would mean peace if peace for the breakout then the stock market’s the
1:55crash so that’s why there will be no peace as long as a slot a cheap money
1:58feeding a lot a cheap wars on the cheap AC lot of death and destruction that
2:02these markets are
2:03are telegraphing up their financing other it’s all about well they’re
2:06leading politicians here
2:07do not want the stock market markets to crash so we have headlines like this
2:12Lindsey Graham predicts an American city
2:15inflames if Obama doesn’t go to war in Iraq
2:18Senator Lindsey Graham Republican from South Carolina warned on Sunday that
2:22militants in Iraq and Syria would attack the US mainland
2:25if President Barrack Obama did not immediately take military action to stop
2:29them
2:30I think about american city in flames because the terrorist ability to operate
2:34in Syria and Iraq
2:35Graham told Fox News host Chris Wallace wow this is amazing
2:39a propaganda from box that’s all it is Lindsey Graham is a
2:42is a propagandist and the idea that if they don’t bomb iraq that
2:47American cities will be in flames this season to the propaganda that we need to
2:50keep financing
2:51the war machine that has it nexus here on wall street and Lindsey Graham is
2:56really a shameless war provoke her
2:58and this idea that he puts forward that in less there is a continuation of the
3:02status quo
3:03a free money for war mongers then suddenly
3:06we have to worry about all kinds a a consequence is that we too can’t deal
3:11with
3:11and they keep pulling out the same I bogeyman
3:14you know 911 bogeyman or this book he met in that killed all the boogie man
3:18ill boogie man left
3:20are Lindsey Graham is the gym at Lindsey Graham is the terrorist
3:23actually I want to look at some were they a more mainstream sorta
3:27establishment media here and even they are starting to question
3:31this never-ending war and what it’s doing to the Empire
3:34I’ll look let’s look at these two headlines here the first one is from the
3:38new republican they say the US
3:39airstrikes in northern Iraq all about oil
3:42they mention that when Barrack Obama was saying we’re going to stop bombing
3:47a rack in order to save some people on a mountain
3:50with the one thing he didn’t mention they said was oil but left that lies
3:54near the center of the American calls for intervention in Iraq they say
3:57because the United States is conducting airdrops
4:00to a the is ET’s who fled the advancing Islamic state militants but it is
4:04conducting airstrikes
4:05around herbal which is to the East and herbal is the capital of Kurdistan the
4:10Kurdish
4:10area and that is aware that oil which areas so they don’t want them to
4:15gain control of the oil member Tony Blair and later died
4:19the Iraq war it’s not about blood for oil events in ninety people on the
4:22streets alone in the placard saying this is all about blood for oil it clearly is
4:25blood for oil in time players one other
4:26were minors that has made a ton of money training blood for oil
4:30and is continuing to do so looks tasty it’s all about this quantitative easing
4:34Lee
4:34been witnessing around the world for years now it has not worked
4:38it did not create the economic growth that we were told it would
4:42there was no escape velocity is Mark Carney chairman a bank
4:45England talked about so now we’re in a deflationary spiral where resources are
4:49scarce
4:50and people are going to war dick get control of the remaining
4:53resources the work today is everyone against everyone
4:57everyone’s at each others throat because all that money printing did
5:00not work it was a failure it calls the very deflation they said it was going to
5:06eliminate
5:06day have failed miserably and as a result
5:10everyone’s got up to their necks in blood so from the new yorker magazine
5:14here
5:15in New York they have a headline oil and herbal so again they see that it’s all
5:19about oil they don’t believe any of this so-called humanitarian intervention both
5:23articles mention that
5:24they also screeched about humanitarian and we need to save the people Ben Ghazi
5:29never once did any president mention that way all their
5:32in bancos de but they keep you know most people in the empire they
5:36they are also on Twitter campaigning for hash tag outraging
5:41invasions all these countries in order to save the people and we need to see
5:44those people
5:45they themselves also never see the oil and here there
5:48actually this is sorta that the moment when
5:52even a progressive disorder and establishment media are starting to see
5:56well it is all about away there’s a lot of economic suicide
5:59we see right now with this confrontation with Russia
6:02in attempt to force oil prices down there’s a lot of money for anything
6:06going on in a manipulation in the oil futures market
6:09but that money printing has the boomerang effect
6:12causing incredible man to poverty so cities like Detroit in around the US
6:16around the Empire are collapsing
6:18because the wealth and income disparity from all that quantitative easing to try
6:22to force Russia did some kinda bargaining table
6:24that you know has existed for twenty years so again
6:28oil manipulation a boil Lacombe oil
6:31even Gaza and the and the devastation we’ve seen there is related to energy as
6:35well because the natural gas reserves associated with that territory so once
6:39again driven
6:40by oil and gas well we’re gonna get onto the Russian stuff in a bit but first I
6:43want it
6:44continue on this story about a wracked with the mainstream media here is
6:47actually saying
6:48the US is bombing its own guns perfectly sums up america’s total failure in iraq
6:53so you know we’ve been in Iraq since 2003 we went out we
6:56we allegedly got out for a few months now we’re back in
6:59but one of the things that they’re saying is that up well arms
7:03sales okay so that Kurds the Peshmerga
7:06have old soviet weapons and the so-called Islamic state militants have
7:12seized the american weapons
7:14from the Iraq military so as a consequence
7:17the absurdity runs deep america’s using american military equipment to bomb
7:21other pieces American military equipment halfway around the world
7:24the reason the American military equipment got there in the first place
7:27was because in 2003 the US had its
7:29military to rebuild the Iraqi army which it just finished destroying with the
7:33american military
7:34the american weapons in the US gave the Iraqi army totally failed at making iraq
7:38securing to become tools that are used by an offshoot about Qaeda
7:41to terrorize iraqis that the US opposes liberated to get
7:45a decade ago so now the US has to use american weaponry to destroy the
7:48American weapon leah gave iraqis to make
7:50iraqi safer in order to make iraqi safer this is the absurdity
7:54Amanda Empire thing when olive your that ejup empire that’s starting to dip tray
7:59and disintegrate and you can’t control your bombing your cell
8:02but this is a natural endgame for a Keynesian economics
8:07where they I believe that by creating a war
8:10you create economic growth but that didn’t happen so they’re bombing the
8:13very weapons that they sold to create the growth to begin with
8:16that didn’t work so the selling another group to weapons to bomb the weapons
8:20that they saw the original group
8:21to create economic growth and that didn’t work so it’s a an enormous
8:25sync all %uh money it’s like those enormous in calls are opening up around
8:29siberia now because
8:30Earth’s it is essentially melting yeah those those enormous
8:34Singh calls this is kinda the economy around the world
8:37where these war mongering has resulted in this just devastating collapse
8:42makes now frankincense and I might add once again this is not a green screen
8:47you’ll hear and see some ferries and their corns behind us
8:50you might see some helicopters you might see some whales a great white sharks you
8:54might see the NYPD teasing people behind us
8:57this is all real several solo singer is running on my way
9:00to the studio ish not existing here this morning
9:04me about this oil of course oil is priced in dollars
9:07has been globally for the last few decades since the nineteen seventies and
9:11this is part
9:11out the US maintains its empire and again we’re gonna look at this
9:15fraying a vampire here’s the headline is from blue Berg
9:19news Bloomberg News that one of the premier
9:22financial news organization he
9:26deep role in any Russia sanctions accelerate risk to dollar
9:29dominance US and European sanctions against Russia threat to hasten to move
9:33away
9:34from the dollar that’s been stirring since the global financial crisis the
9:38global financial crisis
9:392007 and 2008 but they say that the greenback share up global reserves
9:44shrunk to about 61 percent today
9:46from 72 percent in 2001 however it’s from 2001
9:51that we embarked on this policy for a new American Century
9:54which is actually ironically become the policy for not a new American Century
9:58I it’s been a decline since 2001 and Cheney and Bush
10:01rumsfeld invasion of Iraq for oil yellowish we had a few minutes and I
10:06wanted to dig into
10:07this idea that the sanctions are gonna be somehow
10:11a punishment to Russian and what we’re seeing now is the exact opposite once
10:16again the intended consequence
10:18other policies boomerang in the opposite way
10:21and what what’s happening now is that the world realizes that the US is an at
10:26a patrol
10:26rogue stay and they’re doing deals with themselves outside the US dollar
10:31they’re doing deals China Russia Iran and other countries are doing is massive
10:34currency slaps and economic
10:36dale’s outside the US dollar and for russia quite frankly this is the
10:40greatest thing that can happen to them the sanctions because it’s going to
10:42force them to diversify the economy
10:44which they’ve have been reluctant to do for decades have been overly reliant on
10:48on the energy sector in the mail military sector and now if they’re going
10:52to put the sanctions up
10:53with food having the popularity that he has they can go and they can develop
10:57their
10:58high-tech industries they can develop their manufacturing issues and develop
11:01textiles industry think they were all kinds of things that they have been
11:04reluctant to do
11:05but with this mandate up getting around the man at the sanctions
11:09they can diversify that economy in ways that they have not done for decades so
11:13this is the greatest thing that could possibly happen
11:16it’s not just for russia it’s for germany as for europe it’s for a shirt
11:19for China’s for japan is for Brazil
11:22it’s free Africa anymore multi-currency remember I mention the fact that there
11:26are now
11:27after decades their humpback whale out there near
11:31ellis Island the statue Liberty they’re great white sharks here
11:34in a venue for decades why because the model culture and
11:38for toxic waste like the toxic dollar across the world
11:42which is starved out all the fish the wildlife here
11:45now that it’s been cleaned up the hudson river so clean now not this
11:49East River but it was like it’s now clear what judge made available for the
11:53toxicity the US dollar
11:54yes has kept the model culture going around the world yet where people didn’t
11:59bother building on infrastructure
12:00on outside because mama daddy up by it call that locals and yes there
12:05suits protect them and to do all these deals for them in the dollar ending was
12:08priced in dollars at the World War Two all commodities all oil
12:11and now they’re saying you know what we’re ready to break out from the tent
12:15mom and dad Uncle Sam a ready to build their economies independent a state
12:19that’s clearly in the throes of a deflationary depression
12:23warmongering state of chaos well here is a quote I’m going to renew from this
12:27Bloomberg article
12:28and it’s from bank all-america Yes Bank of America
12:32obviously American the crisis created a rethink on the dollar-denominated
12:36world that we live in said Joseph Quinlan chief market strategist
12:39a Bank of America corporations US trust which oversees about $380 billion
12:44dollars
12:45he said quote this nasty turn between Russia and the West
12:48related to sanctions that can be an accelerator toward a more
12:52multi-currency world and they mention that throughout the article that it’s
12:56actually because of this
12:57increasingly using financial sanctions on financial war techniques
13:02whether it’s against Bank para bond France or
13:05elsewhere so people are very concerned about it they also mention that
13:08Germany in Greece for example our two economies in Europe
13:12which have suffered greatly because the sanctions on russia so they’re starting
13:15to think also
13:16like well maybe we do need a more multi-currency world because why do why
13:20do we need to get in the middle this war will
13:22all we want is Trey want free trade and globalization incredibly
13:26the US’s reluctant to embrace free market capitalism
13:30is what’s putting the country at great risk in the economy great risk while the
13:34rest the world
13:35actually adopts fantastically into free-market capitalism
13:38and the result will be the US being left behind crisis right time thanks so much
13:43c-max state in the second half whole lot more
13:51welcome back to the Kaiser report IMAX as our time now to turn to doctor
13:55Michael Hyatt sent
13:57its current book is the bubble and beyond doctor it’s a welcome back to the
14:00guys reported the beer max thanks for coming to Queens
14:03our talk about a Bloomberg headline Bloomberg News as a headline warning the
14:07sanctions against Russia elation
14:09decline up the US dollar in the world
14:12trade now going back to your career back in 1972 you published
14:17super imperialism is have the textbook
14:20I’ll the monetization of the global economy and what this would lead to it
14:24seems like
14:25everything you talked about that book snapping the end game so to speak
14:29is that a fair statement anything yes it is a in that book I showed that the
14:33entire balance the payments deficit
14:35stemmed from foreign military spending and
14:38the dollars thrown off by military spending
14:42end up being a put in the senate foreign central banks so it’s really
14:46foreign central banks that are financed the
14:50the US military jacket and abroad yesterday rejecting it first time
14:54there’s an alternative
14:55rosso espresso about this statement here the
14:58the sanctions against Russia gonna hasten the decline in the US dollar on
15:02world trade that seems to be the opposite of what the eff this intended
15:05for
15:05that’s the irony it’s the best thing that could have happened to Russia
15:09finally now russia is going to be gone protecting its own agriculture
15:13and modernizing at and there’s no need for it to import chechans
15:17arkansas are when it can grow its own check in right as in the case
15:21russia they’ve been overly reliant on russia and I gas and oil for decades the
15:25prices I think it was a sea
15:26like no we don’t need a diversified because they were get dollars by right
15:29the price is low
15:30a panic the company to drill more but here they’re forcing them to do
15:33something that the US I would think would not let them into
15:36diversified that’s the short-termism above the neo-con
15:39sand out what we’re saying is the end of a whole sixty-year
15:43cycle are in the nineteen fifties US more
15:46it was russia the greater the Eurodollar market because it was afraid that but
15:50its dollars in US banks
15:52great let’s get back for a second there because it says that the
15:55that the sanctions against Russian will hasten the decline in the US dollar on
15:59world trade is that the exact opposite of what you think they watched attending
16:02it think so either thinking very short term
16:05I and they don’t realize other russia has an alternative
16:09an it’s as if they drew up this plan to contain Russia
16:13and I move into the Crimea and block its a base
16:16before there was the meeting in Brazil last month where are the breaks that
16:20I’ll got together and created a $100 billion dollar clearing arrangement
16:24and the BRICS bank so that they don’t have to be dependent
16:27on the US dollar for the first time in 60 years
16:30other countries have an alternative to the dollar a in the nineteen fifties
16:35when Russia had dollars a it could well it
16:38couldn’t put them in US banks because it but afraid that the banks to grab its
16:42money like it
16:43grabbed a Iran’s money so they put them in London banks and that created the
16:47Eurodollar market
16:48strengthening the dollar and in 1970 one
16:51the US dollar was forced off the whole issue often discussed on this show
16:55but what happened was that they’re still wasn’t an alternative to the dollar
16:59so central banks only had one thing a to Terry
17:02US Treasury bonds to work with central banks that funded
17:06the balance of payments deficit that really was the military deficit
17:10well for the first time now there’s an alternative
17:13the US is not the only person country that can create money
17:16Russia China the bricks found they can create electronic money and I are used
17:21just like that
17:22US$10 and I’ll there very quickly
17:25forcing other countries not to use the dollar and just to help out
17:29rusher a judge Griesa here in New York
17:32is up block Argentina from up paying its creditors
17:36so that foreign a sovereign debtors now
17:40cannot issue dollar a bonds because if they issued our bonds
17:44somehow they have to go to US bank so you’ll have judge Greece’s ruling
17:48applying to the whole world treating entire country’s like a family
17:51restaurant
17:52a that those broke and hasta up
17:55distribute all its assets so the US’s shooting itself in its own foot
18:00again and again said talk about the is a true
18:04the that your back on a particular up to banking racially
18:08say a very freely with the whole industry couple questions
18:11if the if the world does of US dollars standard reserve currency
18:15it looks like that’s what’s happening doesn’t that gonna make for americans
18:18anyways
18:19the price of stuff like oil and and and and food
18:22is it gonna cause inflation because they don’t have that privilege if they have
18:25extra dry privilege
18:26in principle it well the world what really go of the dollar’s standard it
18:30will have a multi-standard world
18:32there will now be a bricks along with that Fort the US near liberals
18:36have made sure that the Euro cannot create any kinda a euro currency because
18:42in order to create a a Euro the euro is a backing for central banks governments
18:47would have to run deficits
18:48and the Lisbon Treaty blocks them from creating more than three percent of the
18:53deficit
18:54so the US is cripple the Europe from member
18:57being part of this and lead a left only
19:01a Russia China and the brakes to create no alternative to the dollar so
19:05basically
19:06a the US’s a treated is absorbed Europe into the dollar area
19:11that’s going to continue whether the currency whether
19:15up the currency will go down a is
19:18is still up in the air okay so I
19:21let’s talk about the bank International Settlements for second reason they
19:24issued a stark warning about central banks encouraging global bubbles are
19:27warning about bubbles now
19:28are we in a global bubble what will happen what can be done to restore
19:32well okay so is this bubble mentioned by the Bank of International Settlements
19:36where do you fall on
19:38were in the aftermath the bubble the bubble basically
19:41a burst in 2008 when the Joe mortgages
19:45went down so what happened was you have a
19:48still banks and negative equity but work in is not a bubble butt
19:52a an attempt by the Federal Reserve and the Treasury to re inflate the bubble
19:57to try to get it back where we were so the solution to that problem
20:00is to borrow your way out of debt to create another more debt
20:04that you can somehow keep the whole bubble that was inflating
20:07afloat a until the whole system a
20:10precious I so the idea that the bubble bursting in 2008 he had a deflationary
20:16event essentially
20:17bonds went bust sale re inflate the bubble they print lots of money
20:21but that has not created the so-called escape velocity
20:24has not created any real genuine growth in the economy
20:28so it’s been revealed now that this is in fact
20:31nothing but a global Ponzi scheme that the key printing and printing and
20:35printing
20:35just keep in the same place is it still real organic growth track
20:39this is exactly correct that and that’s because the Ponzi scheme is an
20:43exponential growth that you have to have no members keep
20:47joining in a enough to pay off a
20:50they of the former other the first timers the problem is
20:53that are the banks are not lending to real estate because real estate so alone
20:57up
20:58they’re not when the credit card debt US that has actually gone down
21:02and that’s because the economy is having to now
21:06a down all love that that’s that it was running up under the bubble
21:09so the banks are making a a lot of money but my not by lending to the real
21:13economy
21:14the bank 7 went a penny for no capital investment
21:18for new employment for new of a research and development
21:21they the banks have made their money by arbitrage by foreign speculation
21:25by essentially a corporate buyouts one third of the american banks profits and
21:31the last quarter
21:32came from making extending by out loans for companies to borrow cheap
21:36and a replace equity with that
21:39so the that that’s going way up for for the corporate sector
21:43which now is built into the balance sheet having to pay up and dress
21:47so they’re forcing up the cost structure a prices
21:50but are the market isn’t there so that the result is to put the squeeze on
21:54corporations
21:56what usually happens and you have a leveraged buyout
21:59yeah I’m you know this idea a
22:02going private companies take el pais private Warren Buffett
22:05takes Heinz catsup private is a master at this is taking all these companies
22:09private it seems like it there’s another crash
22:12doctor at San sound like Warren Buffett effectively take america
22:15private that’s the whole idea when you say take it private
22:19that means take it private on DEP it’s a financial
22:22process that means borrow the money the buyout stockholders
22:25so now you’re the new owner a rate near zero percent to the cost of this is
22:30fraction well the cost to creating the money by the banks a0 percent but you
22:34can be sure that they charge
22:35I Warren Buffett the corporate raiders a much higher price
22:39that’s why the bank profits are so high right now they get the money from the
22:42federal reserve a want them for the percent
22:44they landed out at 45 or 6 percent for takeovers
22:48that’s their margins so they the banks balance sheets have been recovered
22:52at the expense of the economy it’s a predatory process when you look at the
22:56economy-wide effects
22:57right now the 2008 crisis you know talk about what about that for a second
23:01famously said the Tigers at AC is that wearing a bathing suit
23:05down 2008 I got out early so that Bernie Madoff
23:08was not wearing a bathing suit that by this game is exposed and it went
23:11belly-up
23:12eighty billion dollars lost without it given this current scenario or looks
23:16like we’re set up for another global crash
23:18what country could be the Bernie Madoff like
23:21moment reveal in this crisis is a China
23:24is in Japan they have enormous outstanding debt to GDP the US Bank of
23:29England
23:29where’s the weak link that when this when that when that when the
23:33you know the stuff hits the fan this time who’s gonna be revealed as the weak
23:37link
23:38well this is first about the strongest link China because China’s central bank
23:43is Welling to print all the money the Cape
23:46its economy afloat source the week like ok with China
23:50it’ll be it’ll be America and it’s always been America for the last century
23:53because america
23:55is the most highly that leverage country a ball England is also very severely
23:59that leveraged which is why
24:01the the Bank of England is taken it began a
24:04to take most to try to stop by the leveraging so the US and England
24:08are the weak links but also you have this out you have the sovereign debts
24:12the government’s
24:13a bus southern Europe Greece a
24:16and the other countries that are especially hurt by the
24:19russia’s retaliatory sanctions they’re still not
24:22able to run a budget deficit so you’re having this a fiscal squeeze
24:26in addition to the debt squeeze the fiscal squeeze is completely needless
24:30Greece in the euro zone of course but create money just like the Federal
24:34Reserve is done here
24:36but they don’t because that’s what neoliberalism does a
24:39there’s a they’ve a imposed a class war in Europe
24:42to sort of Titan a the the first though
24:45policy to squee squeezed on wage rates so the market is
24:49a in terms of the market government breaking point Europe
24:53southern Europe is is the meeting point in terms of the but the DEP
24:56financial breaking point it will probably be in the united states from
25:00holidays leveraged buyouts or it
25:03without a leveraged buyout the company can always cut back dividends to
25:06stockholders
25:07if markets turned down but once there’s a leveraged buyout you can’t cut out
25:11payments
25:12so creditors without the declaring bankruptcy in letting the creditors take
25:16over
25:17so what we’re seeing now is the prospect of a huge property grab
25:21by creditors that’s what happens when a bubble burst
25:24doctor thanks much again for being on the Keiser report: thank you very much
25:27back
25:28alright that’s gonna do it for this edition as reported by Max Keiser and
25:31Stacey ever like to thank our guests
25:33doctor Michael a tennis latest book is called
25:36the bubble and beyond United sweetest sweetest guys reports let myself think
25:39by up
25:44home

US Dollar World Currency End but when?  I’m getting prepared now.

 2nd Coming Mortgage Crisis – Transcript of the video

Transcript for the 2nd coming mortgage crisis video, again, it might be inaccurate:

0:00I much rather this is the guys a report he remembered 2008
0:04but everything crashed into a housing bust now and the policymakers came a
0:10with a kid
0:11money transfusion indicate that Corp to live for a while
0:14I guess what it’s still dead second Mac
0:19I those who have access to the free money from the Fed
0:22quantitative easing or do quite well as you can see it 50 story building
0:26luxury apartments going up right behind us if you will be destroyed
0:30for the average person you thought the mortgage crisis is over
0:33about flare up again on the surface everything
0:37okay because you know how prices are rising
0:40everybody think like I that up foreclosures
0:44flowing all that up weathered to think about to hit big-time
0:50in the next you’re too and the first one it he locked
0:53bad is the home equity lines of credit second mortgages that homeowners check
0:58out during the bubble years potentially using their home
1:01as an ATM will start to feature in P
1:04payment as borrowers must pay back principal
1:07that I’m just in trap TransUnion the credit rating for
1:11estimate that between fifty and seventy nine billion dollars and home equity
1:16loans rip the ball
1:17huckabee payment which could add 100
1:21or even thousands of dollars to payment her mom
1:24well this was entirely predictable let’s go back to 2008 the housing market
1:28crashed
1:29and it came out that banks were acting as
1:33instigators in the crisis they were perpetuating the crisis they’re
1:37profiting from the crisis
1:38they were gaming the system their gaming the rating agencies
1:42they were manipulating markets thereby political influence
1:46the solution at that time that back Obama baseless to reform the banking
1:51system
1:52he instead he practical a
1:55any of the line that the crisis mister gray
1:59we need to solve this problem by Ray inflating
2:02the housing bubble and the stock market bubble
2:05and this will be the same since 2008 nary I’m 2014
2:10and the dead patient that crash in 2008
2:14is still dead all that money transfusion
2:17did not create the so-called escape velocity GDP is contracting
2:22not expanding and housing everywhere across America now
2:26Anna around the world is belly flopping
2:30back into a crash except for a few buildings like the one behind it that
2:33financed by
2:35at the oligarchs access to monopoly pricing I commodities like oil or
2:39something else like that but here we are
2:41exactly as we predicted what happened at the exact time
2:45we’re back redeeming the bear trend because no reform
2:49was taken it’s only just trickling its finally starting to slow a little bit
2:54it’s going to get
2:55these articles point that a whole lot worse and 2015
2:58in 15 17 for these are the things coming online that are about to cause a huge
3:03crash
3:04and turns that these home equity line of credit that are coming due
3:08that are going to now be not just interest only but principal
3:11also the three biggest banks apart to have exposure
3:15are Wells Fargo Bank of America and JPMorgan Chase no
3:20by far the number one is Bank of America which has 89 quick seven billion dollars
3:25and these outstanding remember they just paid $11.13 billion dollar fine
3:29for their previous mortgage fraud not a home equity line of credit but these out
3:34instigating actual original origin nation oblong its broad market mortgage
3:39securities from Wells Fargo
3:40eighty billion dollars and JP Morgan Chase about they are $49 billion
3:45and about $29 billion on that will have to be fat 320 17 tho
3:50huge jump in prison one other people they talked to an article
3:53I without california and he took out the heel of
3:57back in that 2007 our AT&T bill pay the last few years
4:00only four hundred dollars a month to which is into only
4:04well he’s offended 45 bank that 2015
4:08it goes up to twelve hundred dollars a month and he’s now retired
4:11so he he said he doesn’t have the money to pay that back to be fun have to call
4:16me let’s just review how Bay bankers in this case the ones you mentioned Wells
4:21Fargo
4:21is one major shareholder the cars warm up at the the tax dodger
4:25and they essentially packaged up
4:28never bad mortgages that they solve that they should have been responsible for
4:33mis-selling cuz they knew that it was garbage she came out there
4:36Senate testimony that they were selling garbage they refer to these things
4:39as garbage just like that garbage with it was the phrase used by Hanley
4:43any blodgett back during the dot-com bubble he was barred from the securities
4:47industry
4:48so yeah these bankers referring to their own market packaging operations
4:52pure garbage in a using another at another a lot more like a is on TV
4:57they took packaged all that up trillions and trillions
5:01a bit and they gave it to the Federal Reserve Bank under Ben Bernanke you know
5:04Janet Yellen
5:05ensuing on their balance sheet it they think it’s worth the 100 cents on the
5:10dollar
5:11it’s not worth even one penny on the dollar and so now is your role in two
5:15parts to
5:16other market crash the Fed
5:19are they gonna come and they’re gonna print and 40 trillion dollars to bail
5:22out Wells Fargo
5:24JP Morgan and all these other banks again they only want to be in pain frat
5:28and stole nine billion
5:30the heroes claiming that they were in violation
5:33up doing deals with iraq at the same week that they announced they were going
5:37to do a deal with around themselves
5:38del bel Marra rack right so they were 10
5:41lollipops to steal from in the market mister market
5:45well at the end of the day saying Bostock
5:49and you’ll have a Wii no will be and ethnic to fall
5:54that part in the mortgage crisis you come he locked
5:57those home equity lines of credit with her resetting people have to start
6:01paying principle as well
6:02F in fat next thing happened
6:06remember this program from Timothy right here when he was at the pad
6:09and the Treasury I mean government’s Home Affordable Modification Program
6:13HAMP
6:14provided only temporary interest really to borrowers
6:17and after five years that really runs out interest rates gradually rising
6:22about 1 percent per year
6:24so over 319,000 lease rate wreath that begin in 2015 according to report
6:30from the Special Inspector General other Troubled Asset Relief Program
6:33architect cap expected the economy to recover by now
6:37but continued sluggishness means that the drug could be pulled out
6:40homeowners before you’re ready higher mortgage payment
6:44now forces from 2015 which is the year before an election
6:47now I’m sure Hampel be expended in order to avoid be 319,000 default which will
6:54inevitably follow in 2015
6:56right camp another program designed to bail out the bankers
7:00the theory being that we’re gonna kick the can down the road
7:03and that consumers workers the economy
7:07well sustain some kinda recovery that’s based on
7:11rising wages fires wages have been
7:15contracting consumerism has been going up because you have more people going
7:19deeper into that american savings rate the global savings rate
7:23is yet at new all-time loans and other debt
7:27factor in the US as it new all-time
7:30highs so there was no consumerism that was based on a wage
7:35and of course people and Ferguson Missouri these people would love to work
7:39for a wage
7:40but the present industry wants them to go to prison
7:44you know the military wants him to go kill people overseas they don’t want
7:48them to get a way to work in the
7:49up for Department sustainable Norman Rockwell type economy that was there in
7:54the 1950s
7:55so we’re gonna talk about wages in a moment but i wanna mention one thing
7:58about the Pampas apart by
7:59hamper which think dirty laundry it the dirty laundry
8:04business up laundering the fraud
8:07happen on the banks like Wells Fargo Bank of America well
8:10and JP morgan admittedly they admit well they paid
8:13secret fines that we don’t know what the charges were but that happen
8:16now in terms of find me on this a the mortgage situation
8:20there’s a tweet from Cameron kusher who is an analyst Lee says
8:23also a record high 30 5.7 percent all
8:26outstanding mortgages at the end of June 20 14
8:30interest only to almost 36 percent
8:33mortgages are interest only that two were taken out in June 2014 for people
8:38can afford the principal
8:40sowie here we just tell you that from hello today
8:44there now you have to start paying principal but people can even pay
8:47interest only even at these ultra-low
8:50hundred-year low-interest-rate like the laws economics where bypass in the past
8:5520 years because
8:57why would have caused inflation and whatever taken the punch bowl away
9:01do rising interest rates and a normal business cycle that happened
9:05because all the labor end up going to China said China was issues the place I
9:09force for players
9:10that really made all than normal fiscal and monetary policy
9:15levers that one would see operating the economy mid
9:18kinda collapse in a lot of ways but that China is as much a basket case anybody
9:22out there is no China left
9:24to treat the deflation necessary to offset the seed money printing
9:27net result incomes continue got out prices while now start to move up
9:31aggressively
9:32well by the way this house the luxury apartment building is
9:37from China you know china didn’t want the inflation
9:41at the fed policies are causing their because they were there chris is pegged
9:44to the dollar
9:45so they had to put too much money which is causing inflation in food right
9:49they’re back 2011 and now they allowed money
9:52p allowing it to come back here was just driving poverty here
9:56people can’t afford at 3am you mention
10:00income that was also in the headlines in the past week or so that we’ve been here
10:05and I’ll middle-class households well fell
10:0835 defense from 2005 to 2011
10:12the median household net worth fell 250,000 private
10:16+91 just 58 out 839
10:192005 2011 though
10:23that 2011 three more years than data that it’s only getting worse and worse
10:27an impact what they found however was at the
10:30well at the bottom 20 percent with the war
10:34said a lot babe went from in 2005 they had a
10:38net Wagner get well up negative 915
10:42each right now it negative
10:45six thousand twenty nine dollars so or put another way
10:48median American ap fourth group of their debt increase
10:53more than fiction whole so they’re all def by 6,000 the bottom 20
10:58right anes to touch again I like this said there and
11:01you now momentarily with China is that
11:04all that money that ended up going to China because the peg to the dollar
11:08they didn’t want it to stay in their economy increase inflation
11:11that would be a detriment to their system it all came
11:15here and to Britain and other places in the form of
11:18real estate purchases fine art purchases and driving the top and
11:23and making a lot of housing unaffordable for most people
11:26about all that game in ship is about to collapse in real time
11:30because there is no China left the feed a deflationary
11:34are forced to be twenty to twenty five trillion dollars
11:37better than printed the last six years to bail out the bankers
11:41primary unaffected Newman three indexes Charles Keith Smith
11:45and I he talks about labor participation rate collapsing
11:49but no one should I want to really look at it final few back in here
11:53is the velocity of money with MQ an economy and read
11:56good help have a high velocity of money in the economy bedeviled with high taxes
12:01rocky a him cartel politically untouchable
12:04bpm watching monopoly the free money for finances
12:07provided by the Federal Bank has been declining lucky money you can fake
12:11unemployment and inflation but it’s hard
12:13paper over the weakness reflected the money lofty here’s the chart
12:16as you see it just lap 2000 before that
12:20well before that actual housing market collapse that money
12:24awfully there’s no money velocity anymore because nobody has any money
12:28right this 50 story building up behind it was just completed that money is dead
12:32doesn’t doesn’t move at all so that’s part of the problem arises
12:36megabanks I you
12:39they are there more coming your way AA
12:45home
12:54welcome back to the guy’s a report by Max Keiser timeouts and
12:57Aaron kraut up am L implode that comp air welcome back to the Kaiser a partner
13:02max going to be here
13:03Navidad honor while and it seems that as though the mortgage crisis that you
13:08cover
13:09we gotta get the update on this first when did you start racking mortgage
13:13lending implosions
13:14how many have there and if you can at that number yeah it does at the end of
13:182006
13:19little bit before but I started the website the end of 2006
13:22and that they believe there are three hundred and 89
13:26before you stop stop counting but that aspect to the crisis and in you
13:30basically had a whole
13:31takeover by the Fed financial authorities and that the big banks
13:34and this is resulting and and not a lot I’ll
13:38lines a lot of eyes actually but as a percentage to
13:41palisades revenues not so much Yemeni handle on the numbers account numbers
13:46you see in the last couple years
13:47yeah I believe that Bank of America is paid about $32 billion
13:51this year alone that doesn’t count the big robo-signing settlement that 2012
13:57the state attorneys general I was at twenty
13:59by Billy so $32 billion this year
14:03and I believe they originated about their $250 billion lines between
14:08I’m sorry I $250 billion are
14:11delinquent so that’s a little over 10 percent in just the delinquent loans
14:16ones from there bankamerica countrywide orgy origination cell
14:20the reason this is important because at the time we were told that we should
14:24just
14:25get out get over it in the past is the past forget about these
14:28fraudulent loans that were made these dodgy mortgages
14:32and here we are five years later six years later and a couple things are
14:35becoming apparent number one
14:37that housing market never really recovered
14:40get your comments on that and looks like it’s about to roll over into another leg
14:44down
14:44yeah that’s probably the case I mean when you look at most series and new
14:47home sales existing home sales
14:50prices worried originations is a big one
14:53most to them I have just scraped along the bottom that they reach them round
14:572009
14:58prices came back a little bit at about 9 percent below the peak nominally
15:03but if you inflation-adjusted peak from 2007
15:08about 25 percent below where the peak would be today
15:11so it’s not that great I’m the
15:15I the sales have a little peek since 2011
15:19they came back a little bit of the bottom by today looks like they’re
15:22stalling out
15:23probably declining okay said the point %uh all the bailouts
15:27and the lack the prosecution for market fraud was a try to pump up another
15:30bottle
15:31because I think the theory the time was a concept called escape velocity
15:36that if the pump up the public housing in the pump up the bubble the stock
15:39market will pop up consumer spending
15:41and your fake it till you make it they’ll get some GDP growth and then
15:45organic growth will kick in
15:46and were just too ignore all the fraud because I gotta keep this economy going
15:50well here we are six years later
15:52GDP is actually contracting bubbles bursting
15:56marge is about the roll over and then we went to jail so
15:59looking back now I have from your purchase
16:03was all just a way for a few guys to get really wealthy by ripping people off
16:08and if so wasn’t enough penis miscarriage of justice
16:12not to prosecute these guys well you know the fire economy finance
16:17insurance real estate banking all at it obviously has a disproportionate
16:22control over the system here including the political process and prosecution
16:27so yediyat they got away with
16:30with quite a bit you know they’re paying fines now by
16:33those are not sis deep that they can survive plus the same time
16:37the Treasury and the Fed are propping them up I’m eating into
16:41the some other elements here are a few cover this aspect I’m your work or not
16:45let me just roll the dice your task squats
16:48anyway but it seems that during the subprime crisis
16:52a lot of these liar loans and loans without any kind
16:57a you know I think if I come here are you got along type a behavior
17:00it it really it when into the black community in a huge way
17:04a people I’m not then almoner suddenly
17:08were able to get all then in 2008 it that community the black community got
17:13decimated
17:14mean they’re the ones I just got blown away now we are a few years later
17:18and we’re seeing in and
17:21purchase in Missouri uprisings
17:24ill a and almost martial law can i connect those dots
17:29is it reasonable to connect those dots can you see that can you comment on that
17:33yes I think it is reasonable I mean you have a persistent poverty and lack of
17:37true
17:38real economic opportunity in certain sectors of society
17:41and that was papered over for a long time with these easy lines
17:46I actually lived in atlanta for number years I lived for a while informed
17:49County
17:50party which is the a territorial by John Lewis
17:53civil rights hero still in office a bite
17:57his district is one of the worst hit by subprime
18:00and I’m you know so you have even a civil rights hero
18:04miss that i think thats that’s very telling about the state and society and
18:09and disadvantaged I think it’s a story that has really been told
18:13in the detail that it should that this community’s
18:16victimize over and over again and subprime again victimized black
18:20community America
18:21in a huge way I am now
18:24of course you’re dealing en serio financial fraudsters
18:29that to cover their over the ml implode dot com
18:32and the processors are also get a new ways
18:35to defraud people and we’ve seen a boom in
18:39what’s called the subprime auto loan market which like the 2007 subprime
18:45mortgage market
18:46they’re being packaged and sold the passive investors and pension funds
18:50isn’t is just a carbon copy repeat
18:54up the subprime nightmare when applied
18:57auto loans your thoughts it’s not good you know in a
19:00I would expect that that the probably not going to be a
19:04be committing quite as much in terms of blame fraud like robo-signing
19:09after the publicity about what happened before in the fines a pain and are still
19:12paying
19:13but you still have the problem that sometimes by definition
19:18marginal borrowers the people that are a great risk so when you’re
19:22increasing the nice them in a bubble well that’s going to have
19:27a a mirror image consequence down the road unless
19:30you have what she said which is take off a loss to the economy
19:33we haven’t seen any take up a anything except the upper 25 10 percent
19:38even one percent society in the stock market so
19:41that all is not going to be paying the subprime car lines back
19:44so these people lost their homes are forced live in their cars
19:48as got caught up in the subprime got a large game now living
19:51good other cars yeah the thought occurred to me that there when they
19:55could inflate housing to Sir
19:56certain extent that that I will these people living in their cars
20:00that’s the new a housing inflation so let’s make it easy for them to get that
20:03subprime garlands and of course when you’re talking about the
20:07wall street talking about the ability to repackage on these loans
20:10South Lamar to passive investors like pension funds and other folks
20:14so they don’t take the rest so these banks and I think interest because you
20:17often hear
20:18this refrain that well you know these people so that they can on the loan
20:23you know they took the risk and they suffer the consequences but it’s a
20:26semantic because
20:28the banks making a long they didn’t take any rest they sold their risk in the
20:31market
20:32ended up on some pension account that God
20:35did a horrible performance in the last year is that a fair statement
20:38and information is asymmetric to use as well no problem by economics that you
20:42have a sophisticated party on one side
20:45unsophisticated units right in the entire banking and financial system
20:49I was really recently that the a losses from the Argentine
20:53bonds are popping up in Brazilian pension funds
20:56another example the Argentine bonds so they went to a
21:00naps are the vulture capitalist Paul singer home gaming the system
21:04and sup taking advantage of the country going into
21:08receivership and people are saying well we love capitalism but hey
21:12it’s what you want some help on defense look at you getting select by Paul
21:14singer’s now you’re the victim
21:16how do you feel about it now and we don’t hear that story
21:19anywhere let’s talk about one of our favorite villains in all this judge Amy
21:22diamond
21:23in his bank JP Morgan they paid $13 billion for the bank’s role in creating
21:27and selling fraudulent mortgage securities
21:29and yet still Americans by largest their him
21:32hero with while Mike Brown
21:36a is shot dead six times a day you know first for stealing a cigarette
21:40I’ll to people understand the Jimmy diamond and Michael
21:45browner are up
21:48similar in that although I would say Mike Mike Brown is
21:52allegedly stole a cigarette worth every dime in without any
21:56doubt whatsoever was involved in a massive multi-billion dollar fraud
22:00how to people I know same time as a hero in this economy
22:03what he’s stealing folks moneywise at it it that they think they’re
22:06in an episode of which gas in the Sundance Kid and that is robert redford
22:10a playa banks and a guy running up did it to the South America somewhere
22:14saying raindrops keep falling on my head in the riding a bicycle the making love
22:17in the school
22:18of crap what’s going on the people that daily diet
22:22is a financial terrorists while people not recognize that
22:27parent wrote I think there’s a blind spot I mean there’s clearly a blind spot
22:30we are always in this country I lionized as you say
22:35wealth and those that that had apparently done very well
22:39financially and don’t and ask is much why
22:43and when I saw the covers in the books and he geographies and Jim diamond
22:47seeking a few years ago I thought rambutan on guys you know they were on
22:51the cover of magazines
22:53you read those stories it’s all fuzzy you know mushy
22:57jump and they’re not really explaining how these guys got when they got what
23:02was a specific thing needed that was so great
23:04for society and when it’s not there you get a big 0
23:09you know it’s all just fluff to me that you have to
23:12you have to be waiting for that do know Mon you know well I don’t know you might
23:16be a
23:17too young to remember ivan boesky but gave it to my hair on wall street. he
23:22had a great book tell
23:24you know I forget what it was called like Rivermark good or something
23:28than a blow-up is what the gel mike milken of course
23:32as every every few years there’s a new guy that threw out there is a
23:36hero up the fraudsters and then of course their father massive larceny and
23:41some scale
23:42what why you see be at the subprime auto loan bubble bursting
23:45the fracking industry looks like an enormous bubble about to burst
23:49other the economic the fracking hardball I real state looks like a rolling over
23:53and play dead again
23:55I’ll what’s your take on let’s say
23:58a the dollar going forward at a anything the next two years
24:03anti-climax happening I have had my eyes set on basically
24:08currency crisis and have course in a race to the bottom with my some major
24:12Western developed countries having to
24:15the quantitative easing financial repression as you mention real estate is
24:19growing over that’s despite pouring
24:21hundreds of billions into it by the Federal Reserve directly you know they
24:24only got that
24:25up to I 25 percent the
24:28from the previous peak you know real
24:32Eco Bubble serious threat would be the BRICS bank
24:35this Brazil Russia India China
24:39you know they they want to the DOL they went out in US dollars out
24:42Germany they want to know why start doing slops amongst themselves
24:46here in the West there to playing it down like all those countries who cares
24:49about them
24:49it seems like it the US dollar gets below 50 percent of
24:53all global transactions which is fast approaching up down from eighty percent
24:57after world war two
24:58then it’s is that game over for US dollar i mean i i don’t know when
25:02exactly you know what number is going to be the game over
25:04has a lot of manipulation I think but no we we tracking closely on email
25:08including watching for it
25:10and I think that is the trend to watch is is dull dollar
25:13is is the on transition away from using the dollar in transactions
25:17lot of his little shadow we because you might have bilateral transactions that
25:21are posted on any market sell
25:23you have to really be looking for it to see it but I think you will see the
25:26trend
25:27you so the dollar declining evaporating every time
25:30i right Aaron kraut a and L hyphen implode dot com Thanks yes ma’am
25:34hazard thanks max and that’s gonna do it for this edition other guys a report
25:39with me
25:39Max Keiser and Stacey however I think my yes Aaron kraut a
25:43ml hyphen implode that comment when reached on Twitter ties reports like to
25:47buy up
25:52home